China’s ‘consumption upgrade’ trend undeterred by US-China trade war, study says
- China saw a 3.3 per cent rise in consumption of fast-moving consumer goods in the first half on year, accelerating from 2 per cent growth a year earlier, according to study
Mainland Chinese shoppers continue to hunt for premium goods, extending the consumption upgrade trend and shrugging off the US-China trade tensions that threatens to dampen the nation’s economic growth, according to a new study.
According to a joint study by global consultancy Bain & Co and market research firm Kantar Worldpanel, spending by Chinese households on fast-moving consumer goods (FMCG) is expected to rise 5 per cent in 2018 on year.
“The trade tensions have had a minimal impact on China’s consumer market,” said Jason Yu, the general manager of Kantar WorldPanel China. “The fundamentals in this market remain strong as consumers show a growing preference for healthy goods, a better quality of life and eco-friendly products.”
The category of FMCG refers to non-durable goods such as packaged foods, beverages, skincare products, shampoos and over-the-counter drugs.
For the first half of this year, the mainland reported a 3.3 per cent year-on-year growth in the FMCG sector, according to the two firms, which do not publish an absolute value for the sales.
The first half growth was higher than the 2 per cent rise recorded for the same period in 2017.
“Low-income people in China are seeking to buy better consumer goods in pursuit of a better life,” said Derek Deng, a partner at Bain. “This is a fresh sign that the consumption upgrade is continuing in China.”
